Global broadband growth slows

Market saturation causes fall in growth rates, but survey predicts pick-up later this year

Worldwide broadband growth has fallen to its lowest level, dropping to 7.1 per cent in the second quarter of 2006, according to a report by researcher Point Topic.

The slowdown from 8.5 per cent growth at the start of the year indicates many markets are reaching saturation point, according to the survey.

But there should be more growth later in the year, says Point Topic analyst Vincent Chook.

'As a common trend, the broadband market often shows a decline during the first half of the year, thus we would expect a more substantial growth in the third and the fourth quarters,' he said.

The report also shows that, despite a slight drop in Asian broadband growth, from 4.5 per cent at the beginning of the year to 4.35 per cent in the second quarter, China created 5.1 million new lines, more than any other country.

'With this high growth rate and a large number of potential broadband subscribers, China will soon become the country with the largest broadband subscriber base in the world,' said Chook.

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Further reading:

• Council completes broadband task
• Milton Keynes ready for WiMax broadband trial
• Chinese broadband to be biggest in the world by 2007